Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Navis Capital bought 75% of Mainland Poultry

Navis Capital bought 75% of Mainland Poultry as existing holders reduced stakes

By Jonathan Underhill

Nov. 2 (BusinessDesk) - Private equity firm Navis Capital ended up with 75 percent of Mainland Poultry, New Zealand’s biggest egg producer, after existing shareholders led by managing director Michael Guthrie sold down their holdings.

Navis confirmed in April that it had taken a majority stake, without detailing the size or the price paid. Recent filings to the Companies Office show a Hong Kong company affiliated to Navis holds three-quarters of the shares, while among the existing shareholders Guthrie's Bay Trustees owns 14.2 percent, Murray Valentine holds 7.1 percent and the family of Jeff Winmill holds 3.2 percent.

Guthrie previously held about 76.6 percent of the shares, Valentine 18 percent and Winmill, who is general manager of the company's MainFeeds business, held 5.3 percent. All three remain involved in the company as directors or managers. Navis reportedly spent about $300 million to take control of the business.

The deal required Overseas Investment Office approval but the OIO didn't immediately confirm that approval had been gained.

Mainland Poultry produces one-third of New Zealand’s eggs, through its Zeagold Foods unit, which has the Woodland and Farmer Brown caged and free-range egg brands, processes eggs products for the food industry, and produces a range of animal feeds through MainFeeds. It operates as a vertically integrated business and the feed unit had been set up as part of that but now sold to other customers and exported.

Phil Latham, a Sydney-based partner at Navis, said in April that Mainland required between $40 million and $80 million of capital expenditure including the cost of phasing out its battery cages in favour of larger colony cage systems or free-range to comply with new animal welfare rules. He said Mainland's know-how in egg production could be exported to markets in Asia. Navis said at the time it planned to "transform Mainland into the pre-eminent agribusiness in the Oceania region with strong export linkages into Asia.

Navis has offices in Asia and Australia and has previously invested in poultry businesses in UK, Europe, Thailand and China.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>